The failures of post-2010 new businesses

[northwichcat]

Not all that long ago David Cameron told us it was brilliant how so many people have set up new businesses. However, it seems a lot of new small businesses have been set up by people afraid to take risks. This has consequently led to a lot of businesses needing more resource but unwilling to do anything to fund that resource. Some examples (not still live in either case):

We are a fin- tech startup with a global ambition!

Gratuu is a solution that lets customers to tip staff (waiters, bar tenders, hairdressers, etc.) directly in their bank accounts via a mobile device.

We are looking for a candidate with a positive Go Do attitude, ability to work independently, passion for design and strong work ethic. The candidate must have experience and access to Adobe Suite and good knowledge of web/ mobile design, good communication skills and attention to detail.

Job Type: Unpaid Internship

Envytations is an online invitations platform enabling anyone throwing a party to be able to choose a design, customise & send to friends - making the process both eco-friendly & hassle-free.

Role Description:
We are seeking an experienced Graphic Designer either full or part time on an unpaid basis - to own the creation and maintenance of both our marketing assets and content created to support the product and other marketing goals.

• Must have access to Adobe Creative Cloud or similar Graphic Design package & be an expert in this field.

We are looking for a candidate with a positive Go Do attitude, ability to work independently, passion for design and a strong work ethic.

So in both cases someone with experience who has their own computer with an active subscription to the Adobe Suite - this is almost equivalent to Uber advertising unpaid Taxi Driver Interns who need their own car and Sat Nav and will just get reimbursed for any petrol used.

 

[DaleCooper]

Those are two businesses that deserve to fail miserably. They are offering absolutely nothing in return for skills that are the cornerstone of the business. What they really mean is "We want an unpaid intern to do all the work while we get the rewards".

 

[jon0844]

Interns are used, quite literally, by so many people these days. I also get asked to write for free a bit, in order to 'get more exposure'.

People do it though, so businesses will keep doing it. Of course some people may get paid jobs, but I suspect not as many as before. My old employer just takes on one, then another, then another with no job offered to any.

 

[Tetchytyke]

However, it seems a lot of new small businesses have been set up by people afraid to take risks. This has consequently led to a lot of businesses needing more resource but unwilling to do anything to fund that resource

That's the new business model in Britain though: pass the financial risk on to the lowest paid and keep the rewards for yourself.

Whether it's unpaid "internships", zero hours contracts or fake self-employment the gig economy, that's how business operates now.

It isn't that they're "afraid to take [financial] risks", it's that they know there's no point in taking the financial risk when you can pass it on to someone else instead.

After all, why on earth would you spend money on buying the cow when you get the milk for free?

Tech startups are the worst for it. They justify it as "building the business". Unfortunately, they behave exactly the same when they become established (e.g. Uber, Deliveroo, Air BnB...)

 

[AlterEgo]

It isn't that they're "afraid to take [financial] risks", it's that they know there's no point in taking the financial risk when you can pass it on to someone else instead.

That's about the long and short of it I'm afraid.

 

[gordonthemoron]

so it's not just consumers who expect something for nothing?

 

[Xenophon PCDGS]

That's the new business model in Britain though: pass the financial risk on to the lowest paid and keep the rewards for yourself. Whether it's unpaid "internships", zero hours contracts or fake self-employment, the gig economy, that's how business operates now.

My word, I was not aware of this new equestrian popularity for gigs but sadly see no such resurgence in the barouche industry...

 

[jon0844]

I am quite proud of myself for never using the services of Uber, or Deliveroo etc.

But plenty of people do, because they save a few quid and don't really care about how it will change the future of work - quite possibly including whatever profession they work in.

If I want to be selfish, I think I'll recommend to my son to set up a business and get venture capitalists to fund it, then just run something that takes a 20-30% cut of other people's hard work. Run it until it has an on-paper value of a few billion, sell up and start over...